| |
|
|
| |
Financial capital
A strong balance sheet, strong cash flow generation, structured capital allocation and financial disciplines to ensure our resilience and support sustainable returns for our stakeholders.
|
|
- Our ability to generate cash provides liquidity to fund working capital, invest in deepening our competitiveness.
- Strong, focused cash preservation, focusing on cost containment and financial discipline.
- Disciplined capital management and allocation to ensure strategic flexibility.
|
|
- Revenue of R73,4 billion (2019: R79,7 billion).
- Operating profit of R2,1 billion (margin of 2,9%) (2019: R3,6 billion).
- Headline earnings of R550 million (2019: R1 977 million).
- HEPS of 296 cents per share (2019: 1 009 cents per share).
- Net debt to equity ratio of 60% (2019: 56%).
- Net debt to EBITDA of 2,2 times (2019: 1,4).
- Free cash flow generated from operations of R3 004 million (2019: R3 061 million).
- Decisions taken to preserve cash during COVID-19 include:
- No dividend payment (2019 full year dividend: 490 cents per share)
- No share buy-backs, with pre-crisis share buy-backs of R313 million (2019: R780 million).
- Agreed short-term relaxation of debt covenants with funders.
|
|
|
|
|
| |
| |
| |
| |
Human capital
A skilled, diverse, productive and motivated workforce enables us to operate in a cost effective and efficient manner to meet stakeholder needs. In turn, we work to provide our employees with career growth opportunities and a fair, rewardin and safe work environment.
|
|
- 17 499 employees (2019: 18 628).
- Training spend of R177 million (2019: R137 million).
- An experienced and diverse leadership team.
- A high-performance, inclusive and collaborative culture that supports diversity, innovation and entrepreneurial flair.
- A human capital strategy that focuses on developing and empowering employees, improving people practices and processes, transforming the workforce and ensuring robust succession. The strategy is aimed at making Motus an employer of choice.
|
|
- 79% of employees in South Africa of whom 73% are black.
- Black representation at top management level in South Africa of 30% (2019: 31%).
- 211 employees participated in managerial development programmes (2019: 654) – 70% of participants were black and 25% were women.
- 795 apprentices enrolled at the Motus Technical Academy (2019: 686) of whom 86% are black.
- Implemented new ways of working for our people and customers in response to COVID-19.
- Complied with all health and safety guidelines for COVID-19.
- Rightsizing of operations and targeted reduction of staff costs through early retirement and retrenchment process.
|
|
|
|
|
| |
| |
|
|
| |
Social and relationship capital
The trust of our stakeholders and building quality relationships with them, enables us to secure our reputation and licence to operate, and achieve our strategic objectives.
|
|
- Strong relationships with OEMs, suppliers and customers, as well as business partners, who include joint venture and technology partners.
- Our constructive relationships with regulators, governments and local communities.
- Commitment to socioeconomic development by making a real difference in our communities, directing our contributions to improving literacy and community healthcare, and promoting road safety awareness.
- Qualifying enterprise development spend of R26 million in South Africa (2019: R89 million).
- CSI spend of R28 million, supporting education, youth development and road safety (2019: R29 million).
|
|
- Through our membership in NAAMSA, we are working with the Competition Commission to achieve sound and pragmatic outcomes that support the objectives of the Automotive Aftermarket Advocacy Programme.
- The Imperial and Motus Community Development Trust supports 45 school libraries reaching over 50 250 earners and assisting over 1 400 teachers.
- Received recognition from the Gauteng Department of Education for the best public private partnership for the work done by the Imperial and Motus Community Trust.
- Contributed R4 million to the Solidarity Fund to assist businesses and communities with food and medical supplies.
- Hyundai and Kia each donated vehicles with Beekman canopies valuing R2,9 million in total to various organisations to assist during the crisis, Mitsubishi assisted with feeding schemes and in the UK, vehicles were made available to staff to assist with community support projects.
- Increased engagement with stakeholders to manage the impact of COVID-19 on relationships.
Read more in our sustainable development report online: Provide a safe and healthy operating environment for our stakeholders; and Maintain strong relationships with broader communities.
|
| |
|
|
| |
Intellectual capital
Our business model depends on effective management systems. Our IT architecture plays a critical role in securing our data,
improving efficiencies and integration across
our business segments. This assists in
providing insight and oversight to ensure
continuity, and drive competitiveness and
agility as our operating environment evolves.
|
|
- Our relationships and capability enable us to continuously align with digital, mobility and automation trends, and adapt to meet changing customer needs.
- Investment in IT, innovation and training to support our collaborative customer engagement model and enhance the customer experience across the vehicle ownership cycle.
- Ongoing optimisation of operating models and responsiveness to disruption.
- Continued focus on IT security and governance to ensure safety of data and systems, aligned to a new way of operating, during COVID-19.
|
|
- Increased our ability to engage remotely with our customers, including through online platforms and apps.
- Partnered with Discovery Insure in South Africa to launch a new warranty product for Vitality Drive customers, rewarding them for good driving behaviour.
- Made good progress in readying the Group for compliance to POPIA, including the publication of the Motus Promotion of Access to Information Manual on our websites.
- Finance and Insurance Management Solutions (FAIMS) continued to pilot its new customer onboarding process, which significantly speeds up the verification of customer data.
- Extended the service and maintenance plans for Hyundai, Kia, Renault and Mitsubishi vehicles to ensure customers did not lose these benefits during the nationwide COVID-19 lockdown in South Africa.
|
|
|
|
|
| |
| |
|
|
| |
Manufactured capital
Our property, plant and equipment gives us
the capacity to generate longer-term returns
for our stakeholders.
|
|
- A network of 329 dealerships and 98 car rental outlets in Southern and East Africa supplemented by 88 commercial and 32 passenger dealerships in the UK and 36 passenger dealerships in Australia.
- Investment in the maintenance of our assets to ensure that they operate in a safe, reliable and efficient manner. These include properties and facilities, either owned by Motus or by others (independent dealerships and outlets), as well as movable assets, for example the rental fleet.
- Motus owns real estate worth R7 billion to support its businesses.
|
|
- Postponed non-critical capital expenditure due to COVID-19.
- Exploring multi-franchise dealership opportunities to rationalise footprint.
- Right-sized operations by closing 19 rental branches.
|
|
|
|
|
| |
| |
|
|
| |
Natural capital
The critical natural resources required by our
businesses are water, electricity and fuel as well as paper in administrative environments.
|
|
- Our commitment to operating in an environmentally conscious and responsible manner.
- Our environmental management approach supports our value proposition and credibility among OEMs, customers, strategic partners and employees.
- 603 509 kilolitres of water consumed (2019: 611 223).
- 75 713 megawatt hours of electricity purchased from municipalities (2019: 80 146).
- 19 million litres of road fuel consumed (2019: 22 million).
|
|
- Achieved an environmental score of 3,3 out of 5 in the FTSE4Good Index Series.
- 116 667 tCO2 across scopes 1 and 2 emissions (2019: 128 270).
|
